Microsoft tops quarterly cloud growth estimates, easing spending concerns

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Give it a try. Click here to return to FAST Tap here to return to FAST FAST July 29 : Microsoft topped Wall Street estimates for quarterly cloud revenue growth on Wednesday, a sign its massive spending on AI infrastructure was paying off as capacity constraints ease and more businesses adopt the technology.Revenue at the company's Azure cloud-computing business rose 43 per cent in its fiscal fourth quarter, compared with analysts' consensus estimate of 39.

98 per cent, according to Visible Alpha.Shares of Redmond, Washington-based Microsoft were up about 3 per cent in extended trading. "This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats, reflecting the confidence customers are placing in us to power their AI transformation," CEO Satya Nadella said.

CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less The strong growth could ease some concerns on Microsoft, which has been under pressure due to surging data center outlays and fears that AI tools could displace its long-reliable productivity software business.It follows Google Cloud's blockbuster quarter, with the rival posting an 82 per cent surge in cloud revenue last week, far ahead of market expectations.Microsoft has forecast spending $190 billion this calendar year, part of the more than $700 billion in unprecedented Big Tech outlays that have strained the companies' cash flows and stoked fears of capacity overbuild.

Meanwhile, the company is cutting dependence on OpenAI's technology by adding Anthropic's models into its offerings and developing in-house AI, while leaning on its deep business ties to boost adoption of the $30-a-month Copilot, including through deals such as the one with Accenture earlier this year.The company is among the worst performers in the so-called "Magnificent Seven" group of mega-caps with an 18 per cent drop so far this year, trailing cloud rivals such as Alphabet.Microsoft has said its cloud growth is being held back by capacity constraints that it expects to persist at least through the end of 2026.

That has forced the company to choose between powering its own AI services such as the Copilot 365 assistant and renting com